HC asks customs official to explain cut in evaded VAT

The High Court has sought explanation from customs official Mohammad Enamul Haque for his decision to reduce the amount of evaded value-added tax (VAT) from Tk 58.07 million to Tk 7.9 million for a company for the fiscal years 2014-2015 to 2018-2019.

Enamul Haque was performing duties at the Commission of the Customs, Excise and VAT Commissionerate in Chattogram when the decision to reduce the amount was taken in November 18, 2020.

In a recent order, the High Court bench of Justice Muhammad Khurshid Alam Sarkar and Justice Sardar Md Rashed Jahangir asked the Commissioner to explain on what basis he had decided to reduce the amount.

He has to explain his position to the court in the form of an affidavit by May 9 this year.

While depositing the demanded VAT in installments, the Commissioner initiated a proceeding against the accused company, BSP Food Products (Prv) Ltd, to realise an additional amount of Tk 4.8 million as two per cent interest for the delay in making payment of the said value added tax.

The High Court also sought explanations from the commissioner to explain as to why he had not claimed two per cent interest at the time of final adjudication on the VAT.

Deputy Attorney General Kazi Mynul Hassan who represented the commissioner in the court hearing said authorities of the commissionerate have given an explanation on imposition of two per cent interest.

However, they did not give any explanation over the decision of reducing the amount of evaded value added tax (VAT) from Tk 58 million to Tk 7.9 million, the state lawyer also said.

According to the case documents, Customs Commissioner in Chattogram on December 8 in 2019 issued a notice upon the authorities of the BSP Food Products stating that the company has evaded VAT amounting Tk 58.07 million from 2014-2015 to 2018-2019 fiscal years.

Later the company made a reply to the notice denying the entire allegations and then the commissioner made a final adjudication of the matter and issued another notice on November 18, 2020 asking the company to deposit Tk 7.9 million as evaded VAT.

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